RE: US$30 million Placing @ 11.26p7 Dec 2023 09:44
Hummingbird Resources PLC (LSE:HUM) has announced a significant equity placement and a series of strategic updates aimed at accelerating its growth.
The gold producer plans to raise up to US$30 million by selling newly minted shares priced at 11.2625 pence each.
A substantial chunk of the new cash, around US$25 million, is underwritten by CI, Hummingbird’s largest shareholder and strategic investor.
The fundraiser is designed to underwrite its growth strategy, enhance exploration activities and strengthen the company’s balance sheet.
Hummingbird is transforming its 51% interest in the Dugbe Gold Project in Liberia into a controlling 51% shareholding in Pasofino Gold Limited (TSX-V:VEIN, OTCQB:EFRGF), listed on TSX-V. This move simplifies the ownership structure of the Dugbe Gold Project, ensuring more efficient decision-making and project progression, investors were told.
Additionally, Hummingbird is planning a revenue protection strategy for the first three quarters of FY-2024. This strategy involves a gold price cost collar covering approximately 60,000 ounces of the company’s production, as part of an effort to significantly reduce its debt.
The company also reported that its Yanfolila project is on track to meet its FY-2023 production target of 80,000-90,000 ounces, with an all-in sustaining cost (AISC) below US$1,500 per ounce. Additionally, the ramp-up at the Kouroussa site is progressing well, with expectations of reaching full-scale commercial production in early FY-2024.
Hummingbird expects to produce around 200,000 ounces in FY-2024. Detailed production and AISC guidance for FY-2024 will be provided in the Q4-2023 operational and trading update at the end of January.
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